Federal and State Government News Update

 

Edition Twelve (4/21/09)

FTC’s Hard-line Enforcement May Shock Industry
Modern Healthcare, subscription needed 4/20/09
The government took another step last week toward closing a legal loophole in federal privacy and security rules for emerging Health 2.0 information technology applications by issuing proposed rules aimed at covering an estimated 900 companies and organizations offering personal health records and electronic systems connected to them.

Senate Committee to Vote on HHS Secretary
AP/Yahoo News, 4/20/09
A Senate committee has scheduled a vote for Tuesday on President Obama's nominee for health and human services secretary, Kansas Gov. Kathleen Sebelius. The Senate Finance Committee will vote on sending Sebelius' nomination to the full Senate. Lawmakers want Sebelius in place quickly as they get to work on legislation overhauling the nation's costly health care system.

Long-Term Care Could Emerge as an Important Player in HIT
HealthLeaders, 4/20/09
Few nursing homes are using electronic health records that allow them to share information with other health care providers—a standard known in the technology world as "interoperability." But more nursing homes could begin using more interoperable EHRs soon, thanks to incentives provided by ARRA and a push to certify long-term care health I.T. products.

Obama Picks Technology and Performance Officers
The Washington Post, 4/19/09
President Obama has named Virginia Technology Secretary Aneesh P. Chopra to be the nation's first chief technology officer. The president announced the choice in his weekly radio and Internet address, adding Chopra to a small group of advisers whose aim it is to enhance and modernize the delivery of government services. The president also named Jeffrey Zients, a chief executive and former management consultant, to be his chief performance officer.

HHS Issues Guidance on Safeguarding Data
Modern Healthcare, subscription needed 4/17/09
HHS issued guidance on protecting personally identifiable health care information by encrypting or destroying it so that it is rendered “unusable, unreadable, or indecipherable to unauthorized individuals.” The
20-page document was the work of a joint effort by HHS, its Office of the National Coordinator for Health Information Technology and Office for Civil Rights, and the CMS. The guidance was required by the stimulus package and is linked to a pair of breach-notification regulations required under the legislation.

Blog: Papering Over the Reality of Electronic Health Records
OhMyGov!, 4/17/09
Thanks to the stimulus package, electronic health records are a hot topic. But as in the early days of the eGovernment push, the reports of paper's death are greatly exaggerated. A bevy of laws and regulations still dictate the use and retention of paper records across the health care industry. Federal and state law prevents physician's offices (and hospitals alike) from simply dumping paper documentation.

How Health Plans Could Benefit From Health I.T.
HealthLeaders, 4/17/09
Hospitals and physicians will spend many hours over the next two years researching and implementing electronic health records to take advantage of the $36 billion slated for health I.T. in the stimulus law. While providers perform most of the heavy lifting, another health care segment might actually benefit more from better health information exchanges. PricewaterhouseCoopers Health Research Institute's released a report "Rock and a Hard Place: An Analysis of the $36 Billion Impact From Health I.T. Stimulus Funding" that focused mostly on how the stimulus law's health I.T. money would affect providers and health plans.

FTC Unveils EHR Security Rule
HealthLeaders, 4/17/09
The FTC's proposed interim rule governing security for electronic health records expands responsibility for maintaining patient confidentiality to include third-party vendors, enhances patient notifications for breaches, and sends a clear signal that the federal government will crack down on violators. In addition to providing about $36.3 billion to offset hospitals' and physicians' costs for installing interoperable EHR, the stimulus package also includes mandates to strengthen privacy and security protections.

Industry May Have to Wait for Unsecured PHI Definition
HealthLeaders, 4/17/09
If you've got a spare minute, call up the American Recovery and Reinvestment Act of 2009 and search for "unsecured protected health information." In your search, you will find 13 references, all under the Health Information Technology for Clinical and Economic Health (HITECH) Act, or Title XIII. Each one affects your HIPAA Security Rule compliance program in light of the new laws. The problem? No one knows what that means, exactly—at least not at this moment.

FCC Approves Five Telehealth Networks Development
Modern Healthcare, subscription needed 4/17/09
The Federal Communications Commission approved $35.6 million to fund the development of five telehealth networks that will link rural hospitals in nine states. The Rural Health Care Pilot Program is allocating the money to five organizations: the Health Information Exchange of Montana, Palmetto State Providers Network, Iowa Health System, Heartland Unified Broadband Network, and Rural Wisconsin Health Cooperative. In addition, the program approved $10.4 million to help the Alaska Native Tribal Health Consortium design its network that will connect rural health care practitioners to urban centers in the state and throughout the lower 48 states.

Many Hospitals Still Falling Short in Reaching Patient Safety Goals
HealthLeaders, 4/16/09
While more hospitals are making progress in incorporating measures to prevent medical errors, they still have a long way to go to better ensure patient safety using tested methods, according to a new report released by The Leapfrog Group. The report, based on 2008 survey results received from 1,282 acute care hospitals nationwide, does show that "hospitals are making great strides and great efforts" to address patient safety concerns.

Hospital CIOs: EHR Carrot Too Small, Stick Too Big
HealthLeaders, 4/16/09
A new survey of hospital CIOs finds that the federal government's $36 billion "carrot" of financial reimbursements to install electronic health records won't be nearly as powerful an incentive as the "stick" of reduced Medicare reimbursements if they don't. The survey of 100 hospital CIOs was conducted in March and released in a report by PricewaterhouseCoopers LLP Health Research Institute entitled, "Rock and a Hard Place: An Analysis of the $36 Billion Impact From Health IT Stimulus Funding."

CMS to Scrap Phase II of Physician EHR Pilot
Modern Healthcare, subscription needed 4/16/09
The CMS has announced it will scrap the second phase of a physician electronic health record subsidy pilot program it launched with fanfare in 2007, citing as a reason the recent passage of the American Recovery and Reinvestment Act of 2009. According to its April 7 announcement, the CMS said the rollback aims to “align its implementation of the demonstration program to support the Recovery Act objectives” and “conduct the demonstration in a manner that avoids paying for similar EHR functions twice.”

FTC Seeks Input on Security Breach Notification Rule
Modern Healthcare, subscription needed 4/16/09
The Federal Trade Commission, in compliance with the American Recovery and Reinvestment Act of 2009, issued a formal notice seeking public comment on a proposed rule requiring vendors of personal health record systems and related entities to provide notice to consumers in the event of a security breach. Comments on the 50-page proposed rule can be submitted online and must be in by June 1.

DeParle: Health Care Reform Moving Steadily Forward
HealthLeaders, 4/16/09
On the calendar, Congress is still officially in the middle of its two-week spring recess, but behind the scenes on Capitol Hill, work on health care reform has been quietly continuing, according to Nancy Ann DeParle, director of the White House's newly created Office of Health Reform. DeParle, who has been in her new position for just a month, has been spending 60% to 75% of her time there talking with congressional members and staff who appear far more receptive to a reform package than they did more than 15 years ago.

Blumenthal to Take Over ONC on Monday
Healthcare IT News, 4/16/09
David Blumenthal, MD, the newly-appointed National Coordinator for Health Information Technology, will assume the role Monday, April 20.
Blumenthal will be responsible for $2 billion in discretionary spending under ONC for grants to be supplied under the economic recovery package.

ACEP: Health Reform for EDs, Too
HealthLeaders, 4/15/09
Feeling neglected and marginalized in the debate over health care reform, nearly 400 emergency physicians from across the nation will head to Washington, D.C., next week to make a case for improving patient access to emergency medical care and pushing Congress and the White House for a greater role in how health care is restructured.

HIMSS09 Recap: Stimulus, Interoperability, and More
HealthLeaders, 4/14/09
Attendance was "off" at the HIMSS09 conference held this past week in Chicago, but the hospital, physician, and health plan executives who were in attendance were the "more serious buyers" and the "decision makers," according to the chief information officers and vendors at the event.

Research Grants Include I.T. Projects
Health Data Management, 4/14/09
The National Institutes of Health will make available nearly $200 million in grants for large-scale biomedical, public health, and health care delivery research. The grants are part of the new NIH Research and Research Infrastructure Grand Opportunities program.

Privacy Rules Hamper Adoption of Electronic Medical Records, Study Says
Computerworld, 4/14/09
In a study that is unlikely to find favor among privacy advocates, researchers from two academic institutions warned that increased efforts to protect the privacy of health data will hamper the adoption of electronic medical records systems. The study, conducted by researchers at MIT and the University of Virginia, said EMR adoption is often slowest in states with strong regulations for safeguarding the privacy of medical records.

The Stimulus Bill: Planning and Perspective
Hospitals & Health Networks, 4/14/09
Want to apply for stimulus funds? Start preparing now. The American Recovery and Reinvestment Act is law. By now, most health care leaders are aware that $19 billion of federal funds is being directed to advance the adoption and effective use of interoperable electronic health records. As health care leaders head up the learning curve and endure a period of hype, anxiety, hope, salivation and confusion, they should individually and collectively be thoughtful about the following implications of the bill.

Former Deputy Looks Back on Underfunded ONC
Modern Healthcare, subscription needed 4/14/09
Robert Wah is no Jay Gatsby; he’s not trying to re-create the past, but he knows what it’s like not having the money to make your dreams come true. Wah, a physician informaticist, served as first deputy to David Brailer when Brailer was named in 2004 to head the newly created Office of the National Coordinator for Health Information Technology. Wah made a presentation on connecting huge private- and public-sector databases of health care information during the HIMSS conference in Chicago.

Chamber Aims to Work with Obama
Politico, 4/14/09
The U.S. Chamber of Commerce has found a surprising number of places to agree with President Obama’s agenda and is negotiating the specifics in daily meetings with the Treasury Department, the West Wing, and Capitol Hill. The Chamber, which calls itself “the voice of business,” is adapting to Democratic control of the House, Senate, and White House by finding areas of agreement on health care reform and financial services regulation, then fighting to prevent additions that could hurt the group’s members. While the Chamber agrees I.T. is important for health care, they will debate about reimbursement rates.

CMS Names 14 Communities for Hospital Readmissions Project
HealthLeaders, 4/13/09
CMS today announced the 14 communities around the nation that have been picked for its three-year pilot project to eliminate unnecessary hospital readmissions that cost Medicare billions of dollars annually in preventable care. The Care Transitions Project sites will operate in: Providence, RI; Upper Capitol Region, NY; Western Pennsylvania; Southwestern New Jersey; Metro Atlanta East, GA; Miami; Tuscaloosa, AL; Evansville, IN; Greater Lansing Area, MI; Omaha, NE; Baton Rouge; North West Denver, CO; Harlingen, TX; and Whatcom County, WA. The Care Transitions Project will continue in all 14 communities through summer 2011.

VA, DOD to Build 'Virtual' EHR
Health Data Management, 4/13/09
President Obama has announced the Departments of Defense and Veterans Affairs will create a joint "virtual" electronic health record to enable access to patient data held in the departments' disparate information systems. Department officials have been discussing how to improve the flow of information between DOD's AHLTA system and VA's VistA system. The President's announcement makes official the decision to move forward.

Dennis R. Horrigan: Electronic Medical Records Will Benefit Everyone
The Buffalo News, 4/13/09
An electronically connected health care system promises better access, improved reliability, and lower costs. A portion of President Obama’s stimulus plan is aimed at having an electronic health record in every exam room. This investment in health information technology has the great potential to improve the functioning of our health care system.

Connectedness, Communities, Capital: Putting HITECH in Context
iHealthbeat, 4/13/09
Billboards and banners inside the grand hall of McCormick Place set the tone for the vendor floor at the annual meeting of HIMSS, version 2009 in Chicago: "The time is now," one read. Another said: "Is your strategy shovel ready?" Urgency was the undertone, from poster to corporate brochure.

Calls for Reform and HIT Investment Coincide with Slump
KHI News Service, 4/13/09
Even as hospitals are grappling with the economic crunch and having trouble accessing capital markets, they’re being asked by federal officials to invest heavily in health information technology and also brace for major health policy reforms. Health reform is promised this year by the Obama administration but what it will look like no one yet knows for sure.

Connecting the Dots of Medicine and Data
The New York Times, 4/11/09
Russ Cucina, 37, lives a double life. For two months of the year, he practices internal medicine, treating patients at the UCSF Medical Center in San Francisco. The rest of the year, he helps the hospital develop its electronic medical records and other data systems. As a medical doctor who also has a master’s degree in biomedical informatics, Dr. Cucina has a foot in both worlds—medicine and technology—and can bridge the sometimes daunting gap between them.

U.S. Medical Industry a Long Way from Being Paperless
The Detroit News, 4/11/09
Getting medical charts to doctors hasn't always been an easy task for Henry Ford Medical System. Twenty years ago, Henry Ford used a fleet of trucks to cart paper files between medical campuses—an increasingly cumbersome chore as patient numbers grew. The hospital now stores about 5 million patient records electronically in a sprawling database accessible by more than 1,000 doctors.

Brother, Can You Fund an EHR?
HealthLeaders, 4/9/09
The American Recovery and Reinvestment Act allocates billions for electronic health records. So much for the cost excuse, right? Think again. The $787 billion stimulus plan signed into law in February by President Obama includes in its $147 billion health care allotment a well-publicized $19 billion to support health care information technology adoption by providers. The American Hospital Association, the American Medical Association, and a number of health care advocacy groups and observers believe the windfall will help remove what has been the largest roadblock for the adoption of electronic health records: cost.



Electronic Records Save Cash
Times Union, 4/18/09
Mr. Wow puts information at the fingertips of doctors and nurses and can potentially stop errors before they happen—but itcosts millions of dollars. Mr. Wow is the pet name for the new computer terminals being rolled out at St. Peter's Hospital. U.S. Rep. Paul Tonko, D-Amsterdam, visited the hospital to see the system and tout the $19 billion in federal stimulus money allocated for electronic medical records.

Vermont Senator Proposes Health Care ‘Smart Cards’
Mass High Tech, 4/17/09
Vermont Senate President Pro Tempore Peter Shumlin, D-Windham, presented a new health care billing plan that would allow Vermont to use smart cards and expand the way the state uses electronic medical records.

Bill Moving to Develop Electronic Medical Records
Fort Mill Times, 4/17/09
A bill that would modernize how Alaska health care providers keep medical records is speeding through the Legislature to capture federal stimulus money. The bill, approved unanimously Wednesday in the Senate, moved out of the House Finance Committee on Friday on its way to a floor vote before adjournment Sunday. The bill would start the process of replacing paper records on prescription information, laboratory results, and other medical records with an electronic health information exchange system.

New York Readies $60 Million for I.T.
Health Data Management, 4/14/09
The State of New York is offering $60 million in grant funding for projects that promote the use of information technology to support the medical home model. The grants are the third round of funding under the state's Healthcare Efficiency and Affordability Law for New Yorkers, enacted in 2004. Health I.T. grants awarded in 2006 and 2008 totaled $159 million. Among other uses, the grants have been a significant source of funding for health information exchanges and regional health information organizations in New York. Grant applications are due June 15.

Georgia Launches On-line Health Guide in Eight Counties
Modern Healthcare, subscription needed 4/14/09
The Georgia Human Resources Department's Public Health Division launched an on-line health and wellness resource. Working in collaboration with Somerset, N.J.-based Longitude Health, the department will offer health assessments, screenings, and information and risk factors on chronic conditions such as heart disease, diabetes, and obesity with a focus on improving cardiovascular health.

State to Help Doctors e-File Prescriptions
Jackson Sun, 4/14/09
Reducing fraud, mistakes, and unhealthy prescription drug interactions are at least three reasons the state is helping health care providers send prescriptions electronically. The Tennessee Office of e-Health Initiatives awarded $14.6 million in grants—funded by the Tennessee General Assembly—to 1,830 Tennessee physicians, advanced practice nurses, and physician's assistants to help them purchase the hardware.

State Privacy Laws May Undercut Electronic Medical Records
Ars Technia, 4/14/09
The U.S. government has now adopted a policy of fostering the adoption of electronic medical records (EMR). The policy is intended to increase the efficiency of the U.S. health care system, thereby lowering costs and reducing the incidence of preventable errors. At the same time, through its The Health Insurance Portability and Accountability Act (HIPAA) privacy rules, the government has set minimum standards for the security of those records.

Maryland Awarded Nearly $1 million for EHRs
Baltimore Business Journals, 4/13/09
Maryland health clinics will receive up to $951,000 this year in federal funds to pay for electronic health records. The technology will be used at eight health centers in Maryland. Funding for the project was part of a $410 billion Omnibus Appropriations Act signed by President Obama last month. The legislation funds the operations of the federal government through Sept. 30.

Minnesota Health Care Companies Poised to Benefit From Economic Stimulus Plan
The Open Press, 4/13/09
Minnesota has long been a leader in the world of heath care. From the Mayo Clinic to the University of Minnesota's medical school to Medtronic, innovative technologies, philosophies, and minds have been a hallmark of the land of ten thousand lakes for decades. So while much of the country remains up in arms about wall street bailouts and golden parachutes, Minnesotans should revel in the fact that the less often mentioned portions of President Obama's stimulus package, the money allocated for health care, will be creating jobs in their neighborhoods and continuing a statewide tradition of excellent health care for its residents.



ICD-10 Regulation Compliance Requires ‘Team Effort’
Modern Healthcare, subscription needed 4/16/09
Successful compliance with the new ICD-10 regulations will require a team effort among payers, hospitals, and the federal government, health I.T. experts said during an ICD-10 summit sponsored by the American Health Information Management Association in Washington, D.C. Last month, the Obama administration announced that it would sustain the Bush administration's Jan. 1, 2012 deadline for using the 5010 standards for electronic transactions and the Oct. 1, 2013 target date for use of the ICD-10 series of clinical codes.

Federal Panel Hears Advice, Concerns about Comparative Effectiveness Research Efforts
HealthLeaders, 4/15/09
The new 15-member Federal Coordinating Council for Comparative Effectiveness Research, authorized under ARRA to assist federal agencies in coordinating and comparing the effectiveness of health services research, heard suggestions from the public April 14 in Washington on where to focus its efforts. The goal of comparative effectiveness research is to provide information on the relative strengths and weakness of various medical interventions.

Providers, Vendors to Congregate for ICD-10 Summit
Modern Healthcare, subscription needed 4/15/09
An estimated 225 people representing providers, payers, and health care information technology vendors—all with a coming ICD-10 problem—are expected to converge on Washington to work on solutions.

Few Hospitals Meet Leapfrog CPOE Standard: Survey
Modern Healthcare, subscription needed 4/15/09
Hospitals that participate in the Leapfrog Group annual survey are not meeting quality and safety standards, and most still have not implemented technologies or best practices for reducing errors. Only 7% of the voluntarily participating 1,276 hospitals fully meet Leapfrog’s computerized physician order-entry standard while 65% of hospitals do not have all the recommended policies in place for preventing hospital-acquired infections.

Rehospitalization Rate Provides Glimpse into Bigger Concerns
HealthLeaders, 4/14/09
A study recently published in The New England Journal of Medicine shows that 20% of Medicare patients are readmitted to the hospital from which they were recently discharged within a month. That percentage jumps to 34 when looking at a three month time period. The data, representing Medicare claims collected between 2003 and 2004, show that more and more discharge is becoming a time at which it is crucial to have a good communication plan in place among caregivers and patients. What's more, the presence of a strong continuum of care can lead to lower rehospitalization rates.

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